MAY 22, 10:45a.m.EDT–UPDATE; Active July futures opened higher on Tuesday at the ICE exchange in New York and quickly rose 1.25 cents to 121.45 cents per pound as pictures and reports from the world’s largest grower Brazil showed evidence that the new 2018-19 harvest has been hit with frost. More forward September prices rose 1.20 cents to 123.65 c/lb. Bears in the market quickly tried to suppress the upward move in prices and brought futures down to levels below last session, but bulls responded with immediate buying and had by mid-session brought Arabica futures back into higher terrain, traders told SpillingTheBeans by telephone from New York.
MAY 21, 2:02p.m.EDT–UPDATE; Active July futures settle up 2.20 cents at 120.20 cents per pound at the ICE exchange. September prices close up 2.20 cents at 122.45 c/lb. Frost jitters in Brazil cited as main cause for driving prices higher.
MAY 21, 2018 (SpillingTheBeans)–Arabica coffee futures were trading higher in mid-session Monday at the ICE exchange in New York, with the active July contract up 2.50 cents at 120.50 cents per pound as market players said the current cold front hitting most of the key southern coffee growing belt in Brazil has supported the upward move in prices. More forward September Arabica prices were up 2.50 cents at 122.75 c/lb.
Intense cold weather has hit Brazil’s main southern coffee growing belt but at this point there is not yet any confirmation of whether the low degrees has caused damage to the new 2018-19 coffee crop from the world’s largest coffee growing nation. The cold weather is forecast to continue through the next 24 hours and local weather services say the current season could be one of the coldest and potentially more threatening in years to hit Brazil.
See more details about the current frost wave in Brazil; http://spilling-the-beans.net/breaking-cold-front-confirmed-to-hit-brazils-parana-sao-paulo-and-southern-minas-coffee-regions-with-frost-may-21-22/